Pacific Power says a "hostile" takeover by the city of Klamath Falls will mean higher rates for people.
A recent study commissioned by the city says forming a municipal utility district would save customers 23 percent on their power bills. Pacific Power says the study failed to take start up and system separation costs into account.
Consultant Doug Larson said, "Residential customers using 100 kilowatt hours a month would be paying 10 percent more with merely looking at those two assumption changes."
The city says the public utility is worth about $31 million, yet Pacific Power says the value is closer to $84 million.
The Klamath Falls city council is scheduled to vote on December 16th, on whether or not to try to buy the system.